Cogstate Limited Fundamental Analysis (ASX: CGS.AX)
Cogstate Limited Fundamental Analysis (ASX: CGS.AX)
Cogstate Limited (ASX: CGS.AX) shows moderate financial fundamentals with a PE ratio of 30.97, profit margin of 20.26%, and ROE of 21.61%. The company generates $0.1B in annual revenue with weak year-over-year growth of -23.34%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CGS.AX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCGS.AX demonstrates superior asset utilization.
Valuation Score
WeakCGS.AX trades at a premium to fair value.
Growth Score
ModerateCGS.AX shows steady but slowing expansion.
Financial Health Score
ExcellentCGS.AX maintains a strong and stable balance sheet.
Profitability Score
ExcellentCGS.AX achieves industry-leading margins.
Key Financial Metrics
Is CGS.AX Expensive or Cheap?
P/E Ratio
CGS.AX trades at 30.97 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CGS.AX's PEG of 2.73 indicates potential overvaluation.
Price to Book
The market values Cogstate Limited at 6.31 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 26.44 times EBITDA. This signals the market has high growth expectations.
How Well Does CGS.AX Make Money?
Net Profit Margin
For every $100 in sales, Cogstate Limited keeps $20.26 as profit after all expenses.
Operating Margin
Core operations generate 20.54 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.61 in profit for every $100 of shareholder equity.
ROA
Cogstate Limited generates $15.22 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cogstate Limited produces operating cash flow of $9.19M, showing steady but balanced cash generation.
Free Cash Flow
Cogstate Limited generates strong free cash flow of $8.70M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.05 in free cash annually.
FCF Yield
CGS.AX converts 2.39% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.97
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.73
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.24
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.006
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.54
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How CGS.AX Stacks Against Its Sector Peers
| Metric | CGS.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.97 | 31.40 | Neutral |
| ROE | 21.61% | 524.00% | Weak |
| Net Margin | 20.26% | 21470.00% | Weak |
| Debt/Equity | 0.01 | 0.53 | Strong (Low Leverage) |
| Current Ratio | 3.54 | 5.62 | Strong Liquidity |
| ROA | 15.22% | -202.00% (disorted) | Strong |
CGS.AX outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cogstate Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
31.60%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
405.78%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
1286.14%
Industry Style: Defensive, Growth, Innovation
High Growth